CIGNA, EXPRESS SCRIPTS SHAREHOLDERS APPROVE PURCHASE OF THE PBM; CLOSE EXPECTED BY YEAR’S END
Cigna and Express Scripts shareholders approved the insurer’s $67 billion acquisition of the pharmacy benefit manager in late August. The deal still has to pass a review by the Department of Justice, but the companies said they expect it to close by the end of the year.
The deal hit a snag earlier in August when activist investor Carl Icahn tried to publicly kill the acquisition saying it “may well become one of the worst blunders in corporate history.” He later backed off after two independent firms came out in support of the merger.
So, the shareholder approval marked an important hurdle in finalizing the deal.
In the end, 90 percent of Cigna shareholders voted to approve the deal. Likewise, Express Scripts shareholders approved the takeover with 78 percent of stockholders voting in favor of the deal.
Cigna CEO David Cordani said the combined company will enhance Cigna’s differentiated service-based model, fueled by actionable insights and analytics, to drive innovation and meaningful growth in a highly dynamic market environment. “As a result, we will build more effective partnerships, further improve health outcomes and deliver a superior customer experience.”
Express Scripts CEO Tim Wentworth said the resulting company will transform healthcare by combining two innovative healthcare services companies that will have the capabilities, financial flexibility, reach and expansion opportunities to create significant and immediate value for clients and stockholders. VTN